1.With regard to the definition of revenue given by IFRS15, which of the following statements is true?

A. Revenue includes cash received from borrowings

B. Revenue includes cash received from share issues

C. Revenue arises from ordinary activities only

D. Revenue may arise from either ordinary activities or extraordinary activities

2. Step 1 of the "five-step model" states that certain conditions must be satisfied before an entity can account for a contract with a customer. Which of the following is not one of these conditions?

A. The entity and the customer have approved the contract and are committed to perform their contractual obligations

B. Each party's rights with regard to the goods or services concerned can be identified

C. It is certain that the entity will collect the consideration to which it is entitled

D. The payment terms can be identified

3. A building contractor decides to build an office building, to be occupied by his own staff. Tangible noncurrent assets are initially measured at cost.

A. Interest incurred on a specific loan taken out to pay for the

construction of the new offices

B. Direct building labour costs

C. A proportion of the contractors general administration costs

D. Hire of plant and machinery for use on the office building site

4. The purpose of depreciation is to:

A. Allocate the cost less residual value on a systematic basis over

the assets useful economic life

B. Write the asset down to its market value each period

C. Charge profits for the use of the asset

D. Recognise that assets lose value over time

5.Which of the following tangible noncurrent assets are NOT usually depreciated:

A. Machinery purchased through a finance lease

B. Land

C. Buildings with a life in excess of 30 years

D. Vehicles